Rising gasoline prices and increased uncertainty weigh on demand; Germany's service sector growth in March remains weak

```htmlGolden Ten Data reported on April 7 that a survey shows, due to the impact of the war in the Middle East and weakened demand in Germany, the momentum of growth in business activity within the services sector suddenly lost traction in March. The final S&P Global Services PMI for Germany in March dropped from 53.5 in February to 50.9, the lowest level since September last year and slightly below the preliminary reading of 51.2. Phil Smith, Deputy Director at S&P Global Market Intelligence, attributed the economic slowdown to rising gasoline prices and increased uncertainty. He added that, despite significantly higher costs, service providers were unable to pass on higher price increases to customers due to the weak demand environment. Smith stated: “The inflow of new business has declined for the first time since last September, clearly indicating the direct impact of the Middle East war on demand. The marked decline in business expectations highlights how rising energy prices, supply chain disruptions, and generally elevated uncertainty are restraining growth for the year ahead.” Business expectations in March dropped to a three-month low of 53.4, below the long-term average of 56.7. The composite PMI final reading fell from 53.2 in February to 51.9 in March, hitting a three-month low, which was entirely caused by the downturn in the services sector.```